How much money South Africans are spending on rent each month
Property management company PayProp’s latest annual market report for 2021 details where and how much average South Africans are paying rent.
“Quarterly rental growth statistics reveal a clear upward movement in Q4. The average rent increased by 0.8% year on year, from R7,854 per month in Q4 2020 to R7,906 in Q4 2021,” said PayProp.
The finance minister Enoch Gondongwana’s budget speech brought the South African Reserve Banks (SARB) continuation of rate hike cycles in early 2022, affecting the local property market.
“An increased repo rate directly impacts interest rates and affects many aspects of an economy, such as the exchange rate and money supply. Therefore it can be used to manipulate spending to reach specific economic goals,” said Johette Smuts, head of data analytics at PayProp.
Additional PayProp calculations between increased repo rates and rental growth show a strong correlation over the three years they tested.
Smuts stressed that the strong correlation is not an accurate representation that one variable causes the other but that it is more likely that the same underlying factors cause both rent increases and interest rate hikes.
“Either way, the strong correlation indicates that we could see a rebound in the rental growth rate if the repo rate increases in 2022 and beyond.
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https://businesstech.co.za/news/property/565566/how-much-south-africans-are-paying-for-rent-across-provinces/